In case you missed it, Fed chair Powell wasn’t the only main central banker who spoke at the event at the end of last week. We also got remarks by ECB policymakers through to the weekend and they were all pushing for a more aggressive stance i.e. 75 bps rate hike in their next policy decision meeting on 8 September.

My take is that they are realising that their window to tighten is closing and this is one of their last chances to push for a rate hike in trying to combat inflation – as much as they are adamant that they will keep tightening into a recession. I mean, just look at the year-ahead power prices in France and Germany and it’s maddening to think that the central bank will be able to maintain their resolve as soaring energy prices crush the economy: